Economic growth, Panel models, Fiscal policy, EU, C23, E62, H50,

This paper examines the e¤ects that …scal decentralization may have on the economic distribution of public expenditures. The estimation run is based on a model in which the utility of the representative agent from the current public expenditure depends on the distance to the level of the administration that provides it. That would be the cause why decentralized economies could experience a higher the share of current expenditure in the budget of the public administrations, in contrast to public capital. Using data from the seventeen spanish regions (1984)(1985)(1986)(1987)(1988)(1989)(1990)(1991)(1992)(1993)(1994)(1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002)(2003) we test the hypothesis and we show that …scal decentralization is a crutial determinant of the share of the public budget devoted to capital.

No abstract

Panel data, Fiscal policy, Intergovernmental grants, European Union,